Successful traders use a variety of strategies to generate profits in the markets. Here are some of the most popular trading strategies:
- Technical Analysis – This involves using charts and other technical indicators to analyze market trends and make trading decisions.
- Fundamental Analysis – This involves analyzing economic and financial data to identify undervalued or overvalued securities.
- Quantitative Analysis – This involves using mathematical models and statistical analysis to identify trading opportunities.
- Trend Following – This involves buying securities that are trending upward and selling securities that are trending downward.
- Mean Reversion – This involves buying securities that have fallen in price and selling securities that have risen in price, with the expectation that prices will eventually revert to their mean.